East timor 2003

15
Exploring Timor-Leste: - Minerals Potential Francisco da Costa Monteiro 1 , Vicenti da Costa Pinto 2 Pacific Economic Cooperation Council-PECC Minerals Network Brisbane, Queensland 17-18 November 2003 1 Natural Resources Counterpart, Office of President, Palacio das Cinzas, Rua Caicoli Dili, Timor-Leste, +670 7249085, [email protected] 2 Director of Energy and Minerals, Ministry of Development and Environment, Fomento Building, Timor-Leste, + 670 7236320, [email protected] Abstract The natural and mineral resources, with which Timor-Leste is endowed are waiting to be developed in an environmentally friendly manner for the greater economic and social good of the people of the this newly independent nation. The major metallic minerals in Timor-Leste are gold, copper, silver, manganese, although further investigations are needed to determine the size, their vertical and lateral distribution. Gold is found as alluvial deposit probably derived from quartz veins in the crystalline schist of (Aileu Formation). It can also be found as ephithermal mineralisation such as in Atauro island. Nearby islands, Wetar, Flores, and Sumba islands of Indonesia Republic have produced gold deposit in a highly economic quantity. In Timor-Leste, the known occurrences of these precious minerals are mostly concentrate along the northern coastal area and middle part of the country associated with the thrust sheets. The copper- gold-silver occurrences associated with ophiolite suites resembling Cyprus type volcanogenic deposits have been reported from Ossu (Viqueque district), Ossuala (Baucau district), Manatuto and Lautem districts. The Cyprus type volcanogenic massive sulphides are usually between 500.000 to a few million tons in size or larger (UN ESCAP-report, 2003). Therefore it is worth of exploring such potential. The Government policy on the natural and mineral resources is clear; that is: to explore and develop with sound mining practice for the benefit of people of Timor-Leste with special attention to the environment protection, and in a sustainable manner. In line with this spirit, the draft mining legislation, which is now in the government circulation for approval, has, indeed, emphasised the importance of environmental protection and sustainable mining operation through the establishment of structures to support them, in one hand. And in the other hand, the formation of infrastructure, institution and human resources capacity building to create and promote a good business environment that encourages private investment. 1. GENERAL BACKGROUND Location Timor lies some 750 km to the north of Darwin, and is separated from the Australian continent by a 3 km deep trough. It is situated in the southeast part of Indonesia archipelago and is one of the islands of the southern Outer Banda Arc, Figure 1. Politically, the island is divided into West and East Timor, with the former belongs to Indonesian republic. The newly independent Timor-Leste comprises the eastern half together with the enclave Oecussi in the West, Atauro island in the north of Dili, and a small islet, Jaco, at the eastern most tip of Timor. Administratively, Timor-Leste is 1

Transcript of East timor 2003

Exploring Timor-Leste: - Minerals Potential Francisco da Costa Monteiro1, Vicenti da Costa Pinto2

Pacific Economic Cooperation Council-PECC Minerals Network

Brisbane, Queensland

17-18 November 2003

1 Natural Resources Counterpart, Office of President, Palacio das Cinzas, Rua Caicoli Dili, Timor-Leste, +670 7249085, [email protected]

2 Director of Energy and Minerals, Ministry of Development and Environment, Fomento Building, Timor-Leste,

+ 670 7236320, [email protected]

Abstract The natural and mineral resources, with which Timor-Leste is endowed are waiting to be developed in an environmentally friendly manner for the greater economic and social good of the people of the this newly independent nation. The major metallic minerals in Timor-Leste are gold, copper, silver, manganese, although further investigations are needed to determine the size, their vertical and lateral distribution. Gold is found as alluvial deposit probably derived from quartz veins in the crystalline schist of (Aileu Formation). It can also be found as ephithermal mineralisation such as in Atauro island. Nearby islands, Wetar, Flores, and Sumba islands of Indonesia Republic have produced gold deposit in a highly economic quantity. In Timor-Leste, the known occurrences of these precious minerals are mostly concentrate along the northern coastal area and middle part of the country associated with the thrust sheets. The copper-gold-silver occurrences associated with ophiolite suites resembling Cyprus type volcanogenic deposits have been reported from Ossu (Viqueque district), Ossuala (Baucau district), Manatuto and Lautem districts. The Cyprus type volcanogenic massive sulphides are usually between 500.000 to a few million tons in size or larger (UN ESCAP-report, 2003). Therefore it is worth of exploring such potential. The Government policy on the natural and mineral resources is clear; that is: to explore and develop with sound mining practice for the benefit of people of Timor-Leste with special attention to the environment protection, and in a sustainable manner. In line with this spirit, the draft mining legislation, which is now in the government circulation for approval, has, indeed, emphasised the importance of environmental protection and sustainable mining operation through the establishment of structures to support them, in one hand. And in the other hand, the formation of infrastructure, institution and human resources capacity building to create and promote a good business environment that encourages private investment.

1. GENERAL BACKGROUND

Location Timor lies some 750 km to the north of Darwin, and is separated from the Australian

continent by a 3 km deep trough. It is situated in the southeast part of Indonesia

archipelago and is one of the islands of the southern Outer Banda Arc, Figure 1.

Politically, the island is divided into West and East Timor, with the former belongs to

Indonesian republic. The newly independent Timor-Leste comprises the eastern half

together with the enclave Oecussi in the West, Atauro island in the north of Dili, and a

small islet, Jaco, at the eastern most tip of Timor. Administratively, Timor-Leste is

1

divided into 13 districts with each district headed by an administrator. Dili is the capital

of the country. The climate is tropical, with topography of the island is dominated by

rugged steep sided mountainous terrain to the north and relatively subdues morphology to

the south. Important minerals occurrences are in the middle and north part of the country.

Geology Timor-Leste takes half of the Timor Island, which is regarded as part of Outer Banda Arc

islands. This arc is non-volcanic arc, except Atauro island the Miocene-Pliocene volcanic

island. Timor, based on published tectonic models, is believed to be formed by a complex

of stack thrust sheets accreted over the Australian continental margin deposits during

Middle-Miocene (Audley-Charles, 1968) and Middle-Pliocene (Carter et al., 1976).

Although, due to the complex distribution of rock units as a result of tectonic

disturbances, four distinctive tectonostratigraphic units can be recognised in Timor-Leste,

Figure 2 & 3. They are:

1. The autochthonous units which encompass all the rock units that were deposited

in Timor basin (insitu) during and after major orogenesis. These include the Late

Miocene-Pliocene mollase deposits (Viqueque Formation), and Quaternary reefal

carbonates and alluvial deposits (Baucau, Poros, Suai and Ainaro Formation).

2. The parautochthonous units that are the relatively coherent pre-collisional

Australian continental margin deposits which were brought to its present position

by the northward drifting of Australian continental plate. This forms athe largest

component of the Timor island and indeed Timor-Leste (e.g., Audley-Charles,

Charlton et al., 1991). They consist of Permian turbidite sandstones and

limestones, and interbedded with basalt (Atahoc and Cribas Formations), Triassic

pelagic limestones (Aituto Formation) and sandstones (Babulu Formation),

Jurassic shales (Wailuli Formation), Cretaceous radiolarite and shales (Waibua

Formation), and Early Tertiary shelf limestone (Dartolu, Borolalo, and Cablaci

Formations), and the pre-Permian metamorphic complex (Lolotoi Formation)

3. The allochthons units which are comprised of Permian to Jurassic metamorphic

rocks (Aileu, Maubisse Formations), and possibly some Tertiary Banda Arc

2

Terrains (the Oecussi and Atatapupu volanics, which were detached from the

lower crust and overthrusted onto parautochthonous and autochthonous units.

4. And the olistrostrom units that comprise of variety of unsorted angular to

subangular block of Permian to Early Miocene (occasionally to Late Miocene) in

a scaly clay matrix (Audley-Charles, 1968; Charlton et al., 1991). This unit is

known as Bobonaro Scaly Clay Formation.

Tectonics The tectonic history of the island has been subject to debate for decades, not a single

structural explanation has yet been sufficient to explain all the complexities it has.

However, it is widely accepted that Timor was formed as result of collision between

Australian continental plate and Banda Arc (Asian microplate). The timing of these

collision has been so far interpreted as from Middle Miocene to Mid-Pliocene (Audley-

Charles, 1968; Carter et al., 1976) bringing about the thrust sheets that are now can still

be seeing as Klippen in most hill tops in the island. This collision was followed by rapid

uplift in the Late Pliocene and Quaternary that has removed most of the thrust slices open

the structural windows to the pre and syn-collisional sediments. The windows provide

access to possible metals and hydrocarbons of Mesozoic sedimentary sequence. The

mafic and ultramafic thrust slices are the focus for most of the metallic minerals and

massive volcanogenic sulfide deposits (ESCAP-report, 2003). The occurrence of mineral

potential can be regarded as closely associated with these tectonic activities and their

distribution is controlled by the geological structure domain, which is east-westly

directional.

3

Figure 1. Location of Timor-Leste (East Timor) and surrounding areas.

Figure 2. Generalised geological map of Timor with modification (Charlton, 2002)

4

AGE East Timor Bonaparte Basin Tectonic Events

QUATERNARY Baucau -

Poros

Limestone

Fms (coral reefs)

Ainaro

Fm (gravels)

Suai

Fm. (sands)

Alaria Fm.

Pliocene (corals reefs, cross-bedded

conglomerates) Baracouta

Fm. Upl

ift o

f Tim

or ,

and

dow

n w

arpi

ng o

f

Tim

or T

roug

h

L

Viqueque

Mollasse

Group (basal conglomerate,

sandstones, shales, marls,

chalks)

Aut

ocht

hono

us

Syn-

post

oro

geni

c Ti

mor

bas

ins d

epos

its

Col

lisio

n an

d th

rust

ing

M

Bobonaro Scaly Clay (BSC) Fm.

Olis

tros

trom

e Sy

n-or

ogen

ic g

ravi

ty sl

ide

depo

sits

Oec

ussi

and

Ata

pupu

vol

cani

cs

Arrival of Australian leading

edge continental margin on

the arc trench, and

underthrusted. Emplacement

of BSC.

Mio

cene

E

Cablaci Fm. (calcarenites)

Aliambata Fm. (calcilutites)

Allo

chth

onou

s, of

Ban

da T

erra

in

Oliver Fm.

Subduction Australian

oceanic crust into Banda arc

Eocene

Dartollu Limestone Fm. (biocalcarenites, calcareous algae limestones)

Hibernia &

PrionFms.

TER

TIA

RY

N

EOG

ENE

Paleocene

Woo

dbin

e G

roup

(s

helf,

slop

e to

ope

n m

arin

e se

dim

ents

)

Johnson Fm.

Late

Middle

Waibua Fm (redilarites, shales, calcilutites, manganese nodules)

CR

ET

AC

EO

US

Early

Bathrust Island Group (marine shelf carbonates)

Late

Flamingo Group (open marine pelagic sediments)

Break-up of Australian NW

margin

Middle

JUR

ASS

IC

Early

Wailuli Fm. (shales)

Troughton Group (fluviodeltaic nearshore sediments)

Nome Fm

Late

Bab

ulu

Fm

(sand

ston

es)

Challis

Fm

Pollard

Fm.

Middle Aitu

tu F

m.

(cal

cilu

tites

)

Sahu

l

Gro

up

(fluv

iode

ltaic

/mar

ine

shel

f sed

imen

ts)

Osprey

Fm.

TR

IASS

IC

Early Mt.Goodwin Fm. (marine shales)

Late

Cribas Fm.

(quartz arenites, micaceous shales, calcilutites, basalts)

Hyland Bay Fm. (marine shelf carbonates)

PER

MIA

N

Lower

Atahoc Fm. (quartzites, black shales, calcilutites, basalts)

Mau

biss

e Fm

(red

crin

oida

l lim

esto

nes)

Perm

ian

to ?

Tria

ssic

reef

al c

arbo

nate

s

Aile

u Fm

(qua

rtz-p

hylit

es a

nd sc

hist

s)

Perm

ian

to ?

Jura

ssic

met

amor

phic

rock

s

Allo

chth

onou

s, di

stal

pre

-col

lisio

n A

ustra

lian

cont

inen

tal m

argi

n de

posi

ts

Kulshill Fm. (marine sandstones)

Pre-

Permian

Lolotoi Fm (crystalline rocks)

Para

utoc

htho

nous

, pro

xim

al fa

cies

of p

re-c

ollis

ion

Aus

tralia

n co

ntin

enta

l mar

gin

depo

sits

and

bas

emen

t roc

ks (L

olot

oi F

orm

atio

n)

Exte

nsio

n an

d rif

ting

of N

orth

wes

t A

ustra

lian

mar

gin

Figure 3. The generalised stratigraphy of Timor and the Bonaparte Basin. Nomenclatures

are ased on various sources (e.g., Audley-Charles, 1968; Charlton, 2002; Monteiro,

2003).

5

2. MINERALS POTENTIAL

Metallic Minerals The complex geology of Timor Leste is favorable for the occurrence of a wide variety of

minerals as well as hydrocarbons. More than 200 minerals occurrences are known to be

distributed throughout the country. Some important metallic minerals known to occur in

Timor-Leste are such as gold, copper, manganese, silver, chromite. The occurences of

these precious metal can be linked to the complex geological feature that Timor-Leste

does have. As mentioned earlier in the tectonic history, the island of Timor was built by

the collision that resulted in the development of an inner arc volcanic terrane, the Atauro

island. This island has been known to be good potential for gold and other precious metal

deposits (UN ESCAPE-report 2003), Figure 4. Whereas, in the Timor island a series of

thrust sheets were emplaced. These thrust sheets consist of ultramafic, mafic, and

volcanic terrain that were part of Banda Arc, and have been called as Banda Terrane

(Harris, 1991). The main metallic minerals potential in Timor-Leste is in the ultramafic

rocks, Figure 5.

Non-Metallic Minerals Non metallic minerals of the primary importance are sand and gravels, limestone for

cement, clay for bricks. Others such as bentonites, kaolinite, marbles, gypsum, and

phosphate are also of great potential for development, Figure 6.

Mineral Occurrences in Timor-Leste Mineral occurrences in Timor-Leste have been reported from time to time, since

Portuguese colonialisation to Indonesia occupation in several official publications. One

extensive minerals database was prepared by Mr. Vicente de Lacerda in 1999 for the

Office of Mineral and Energy Department of Indonesia, but in this paper the author

follow the result of latest report published by UN ESCAPE for the Government of Timor-

Leste.

6

The orogenic history of Timor plays a critical role in defining the location of its metallic

mineral occurrence, notably copper, gold, silver, chromite, manganese, and a number of

important non-metallic minerals such as limestone, marble, bentonite, gypsum and

phosphate. The northern edge of Timor island is host to a number of important mineral

occurrences. One of the potentially richest copper zones is the north edge of Ambeno

(Oecussi Enclave District). The base metals and their associated precious metals are

concentrated in ultramafic rocks, which are part of allochthonous ophiolite suites.

Precious metals such as gold and silver were also deposited in and adjacent to volcanic

centers as a result of epithermal activity. Some important copper occurrences are also

located in southern Baucau and Viqueque districts. Less significant deposits of chromite,

manganese and iron sand deposits occur in Manatuto, Baucau and Lautem districts and

on Atauro island of Dili districts. Rare occurrence of lead and zinc are known.

The widespread occurrences of limestone and marl, specially in the eastern and western

coastal areas of Timor-Leste are important and are amongst the few minerals that have

been exploited for many years. There is potential for development of ornamental stones

from numerous good quality marble occurrences in Manatuto district east of Dili. Argillic

alteration has resulted in the development of a red to white clay complex in the Aileu

Formation. It extends from Dili district to Aileu and Ermera districts. River valleys

throughout the country include a wide range of sand and gravel deposits.

A brief summary of mineral indication and occurrences based on the UN ESCAPE-

report are as follows:

Copper The mineralisation occurs as sulphides veinlets containing chalcopyrite and pyrite in the ultra basic units, with extensive serpentinites alteration and with evidence of intrusive diorite/diabase. In Ossuala area (Baucau district) sampling by Allied Mining Company (Wittouck, 1937 in Bambang, 2003) indicates grade values of 10% Cu, 3 g/t Au and 170 g/t Ag. Gold The gold mineralisation has been observed in several forms as quartz, quartz-calcite and calcite veins hosted by shale/slate or schist. The veins are commonly pyritised and mineralised with gold. In Hilimanu area the mineralisation occurs in the metamorphosed igneous rock. The mineralisation are associated with quartz vein ( 0,5 – 12 m wide)

7

containing chalcopyrite, limonite and calcedony. Some samples indicate an average grade of 0,5 g/t Au and 50 g/t Ag. Chromite The chromite deposits has been reported from Baucau, Hilimanu (Manatuto district) and Manufahi districts. The deposits were found as primary mineralisation in the serpentinites hosts. There has two mineralisation type i.e; Schlieren and Podiform chromite. The podiform chromite in the Manatuto districts is similar to chromite mineralisation in allochthon ophiolite bodies found in the Circum Pacific belt in the Philippines, New Caledonia and Kalimantan, Indonesia. The quality of the chromite is good, with grades between 36% and 51% Cr2O3. As for grade, 80% of the world’s major deposits have between 33% and 52% Cr2O3. Manganese The manganese deposits were discovered in several places such as Vemasse, Talamata, Venilale (Baucau district), Uato-Carbau (Viqueque district). The deposits are interbedded form within red shale and associated with the limestone of the Bobonaro Formation. The manganese deposits mainly composed of pyrolusite mineral with the grade range between 84 – 94.5% MnO2.

Phosphate The deposits are located in Daemena, Abo (Quelicae-Baucau district), and Laleia ( Manatuto district). The phosphate deposits occurs in the unconsolidated gravel - boulder material which similar age to the Ainaro Gravel. Analysis result of the samples taken from Abo area has revealed the significant assay ranging from 9.97 % to 21.55% P2O5. The best assay was recorded from Japan Development Consultant showing 31% P2O5.

Bentonite Bentonite-clay deposit is partly bedded of the claystone of Bobonaro Formation and located at Venilale (Baucau district), Bobonaro (Bobonaro district). In Mulia-Quelicai village (Baucau district), the swelling value was recorded between 371 up to 1829 x dry volume. Mineral reserve has been estimated to be approximately of 115,570,000 cubic metres (around 6 X 6 km2). Marble The deposits have been recorded at Cablaci-Same (Manufahi district), Laclo (Manatuto district) and Builale (Viqueque district). In Laclo, the gross mineral reserved is thought to be at least 5.000.000 cubic metres.

Gypsum The gypsum deposit was found to be associated with claystone of the Bobonaro Formation. The deposit is located at Laleia-Obrato (Manatuto district), result from the test pitting investigated area of 50 has revealed the mineral reserved to be approximately of 400 tonnes.

8

10

124°30' 125°00' 125°30' 126°00' 126°30' 127°00'

Figure 4. Compiled map of mineral occurrences in Timor-Leste.

%U%U

%U

#³%U %U

%U%U

%U

%U%U

%U

'W

'W

%U #³

ÊÚÊÚ

#³#³

%U%U

'W 'W

%U'W

'W

#³#³

#³%U

%U

%U %U%U

<

#³#³

§

§

§

££

£

%U

%U

%U

%U

%U

%U

%U

%U

$T

$T

%U

'W

'W

'W

'W

'W #³#³

%U

%U

%U

#³ #S

§$T

%U

#S

#³'W

%U

'W

%U

%U

%U

%U

%U

%U

%U

%U

%U%U

%U

#S

#S

ÊÚ

$T

$T $T

£

'W

%U

%U

%U

%U

$T%U

%U

#³#³

<

FFFFF

FFF

%U

%U

%U%U

%U%U

%U

%U#S

§

%U

$T

$T

$T

'W

'W

§ §

§

§

§

%U %U

%U

%U

%U

%U

$T

$T

ÊÚ

ÊÚ

ÊÚ

'W

'W

#³ %U

%U

£

$T#³

%U

%U%U%U %U§

%U

%U

§

§

$T

%U %U

%U

%U %U

%U

%U%U

£

#³ #³#³

#³ #³#S

#S

#³ <

<<

'W

#S

ÊÚ

%U

%U

%U

'W 'W

'W%U

%U%U

%U

%U

%U$T££

%U

$T£

$T

$T

$T

$T

$T

#S#³£

£'W

'W

'W

'W%U #³

%U%U

%U%U

%U

%U

#S

#³%U %U

#S

$T

%U

%U

%U

%U

%U

%U

%U

< <F

F

%U

%U

%U

%U

%U

%U

'W

%U%U

%U

%U

F

$T $T£

£

£%U

%U

%U

%U

%U%U

%U

%U

%U

%U

%U

%U

%U

#³ #³ #³

#³ #³

#³#³

#S

#S

%U 'W 'W

#S

%U

$T

$T

$T

$T

$T $T

§£

'W

%U < <

ÊÚ F

'W

%U

F F

#³#³

£ £

£

£

£

£

%U

§§

100 0 100 200 Kilometers

N

10°00' 10°00'

9° 30' 9° 30'

9° 00' 9° 00'

8° 30' 8° 30'

8° 00' 8° 00'

7° 30' 7° 30'

124°30' 125°00' 125°30' 126°00' 126°30' 127°00'

-150000

-150000

-100000

-100000

-50000

-50000

0

0

50000

50000

100000

100000

150000

150000

-1100000 -1100000

-1050000 -1050000

-1000000 -1000000

-950000 -950000

-900 000 -900000

-850 000 -850000

Tl minerals.shpIron and Ferro-Alloy Mtl§Base Metals£

Precious Metals$TChemical & Fertilizer Min#S

Ceramic/Refractory%U

Other Industrial Material#³

Building Stones'W

Post vulcanismÊÚOil and Gas Seeps<Oil and Gas WellsF

KEYS

Et Elevantion

Elev.shp0 - 50

50 - 100

100 - 500

500 - 1500

1500 - 2000

200 - 2500

Over 2500

Figure 5. The distribution of metallic minerals in Timor Leste

Dili

Atauro

Jac

Oecussi

Indonesian WEST TIMOR

TIMOR-LESTE

50 KM

11

12

Oecussi

Atauro

TIMOR-LESTE

Indonesian WEST-TIMOR

Dili

50 KM

Figure 6. The distribution of non-metallic minerals in Timor-Leste

3. Legislation Timor-Leste has numerous occurrences and deposits of a wide spectrum of industrial

minerals, construction materials, base metals and precious metals and stones. All of these

offer present and future opportunities for strengthening employment, infrastructure and

government revenue but also pose certain threat to environment if they are not explored

and developed in a sound mining practice and environmentally friendly manner.

Therefore, it is very important that the Government stipulate a legislation from which

every party involves can follow. In this regard, the national mineral policy legislation

and regulatory framework, the technical draft of the Mines and Mineral Management

Law (MMML) has been prepared by an UN SCAPE and is to be studied by the

Government Legal Draftsman prior to the submission to the parliament for legislation and

is due to be approved by probably mid next 2004. The draft is intended that the

government will adopt and implement a mineral policy that will allow for the responsible

and profitable exploration and exploitation of its mineral resources.

Mining License

It has been recommended that only one formal document, a Mining License, be required

for a successful applicant to secure the right to conduct exploration and mining activities.

Tax

Tax considerations are required under an Investment Stabilisation Agreement (ISA). The

main function of the ISA is to negotiate the ”freezing” of certain tax, fiscal and legal

provisions over fixed periods of time in the large-scale mining project.

Environment Protection

It has been recommended that the mining law specify social responsibility imperatives as

an integral part of work programmes to be registered annually by mineral license holders.

Community Partnerships

It has been recommended that where exploration activity identified a commercially viable

mining operation, provisions are made for the creation of a formally constituted

13

Sustainable Mining Development Authority (SMDA) consisting of a cooperative

partnership of the Government appointees and representatives of the local community,

the district and the mineral holder’s management team.

Capacity Building

It has been recommended in the interest of capacity building in the natural and mineral

resources sector that exploration and development work should include obligatory

training and education in the mining projects. Successful projects should deliver well-

trained and educated technical personnel during and at the end of the project’s life.

Institutional Development

It has been recommended that to advance the Government planning for department

structure and capacity building, the Government designate a new or existing Department

to include a Geological Survey and Mines Division and Oil and Gas Division.

Registrar

It has been recommended that the Government recruit and appoint a “Registarar” to begin

the research and preparation of a National Mineral Rights Registration System

(NMRRS).

4. Conclusion Geologically Timor is controlled by the collision in Middle-Miocene to Mid-Pliocene

between Australian continental plate and Banda arc plate (Asia microplate). This

collision has emplaced thrust sheets including the ophiliotes that host the a number of

important minerals. Potential metallic minerals in Timor-Leste are gold, copper,

chromite, manganese, and silver. Non-metallic minerals are widely distributed, namely,

sand, gravels and other aggregates for construction materials, clays for bricks, marble for

ornaments, etc.

Timor-Leste is still at a very early stage in the formation of the infrastructure, institutions,

human resource capacity and legislation that can support the full control of its natural and

14

mineral resource. The draft of mineral law has just been sent for review by the Council of

Minister before it can be brought to the parliament for final approval. However, as it is in

the policy of the Government to protect the environment as much as possible, and at the

same time promote a good business environment that encourages more private

investment. The law is very flexible but does emphasise the importance of an

environmentally friendly and sustainable mining practices. The Investment Stabilisation

Agreement is stipulated as a way to allow Timor-Leste to be more competitive. The

planned Mine Reclamation Guarantee Trust Fund document as one of the condition that

should be submitted prior to the development of a prospective area is a way to make sure

the environment reclamation will fully implemented at the end of the project life.

Acknowledgement We thank to Mr Jim Short, the Executive Director AUSPECC, for kind invitation and

arrangement for us to participate this conference. Thanks also to Mr Barid Manna, Tinor-

Leste Mineral Advisor, for his valuable suggestions, and we appreciate Mr to Lorenzo,

Mineral technician, for his kind assistance during the preparation of this paper.

Reference Audley-Charles, M.G., 1968. Geology of Portuguese Timor. Geological Society of

London Memoir No. 4, London. P. 1-76

Bakker, P.J., 2003. The mineral resources potential of East Timor (Timor-Leste).

Conference proceeding-International Conference”Oppurtunities & Challenges

for Oil and Gas and Mining Sector in Timor-Leste. Dili.

Bambang, S., 2003. Minerals Potential of Timor-Leste. Conference proceeding-

International Conference”Oppurtunities & Challenges for Oil and Gas and

Mining Sector in Timor-Leste. Dili

Carter, D.J., Audley-Charles, M.G., and Barber, A.J., 1976. Stratigraphical analysis of

the island arc-continental margin collision in eastern Indonesia. Geol. Soc.

Lond. Journal, V. 132, p. 179-198

Carvalho, J., 2003. Potencialidades em rochas ornamentais e rochas e minerals industrias

de Timor-Leste. Conference proceeding-International

15

Conference”Oppurtunities & Challenges for Oil and Gas and Mining Sector in

Timor-Leste. Dili

Chamalaun, F.H., Lockwood, K., and White, A., 1976. The Bouger gravity field and

crustal structure of eastern Timor. Tectonophysics, v. 30, p. 241-259

Charlton, T.R., Kaye, S.J., Samoedra, H., Sarjono, H., 1991. Kai islands: Implications for

evolution of Aru Through and Weber Basin, Banda Arc, Indonesia. Marine

Petroleum Geology, v. 8, p. 62-69

Harris, R.A., 1991. Temporal distribution of strain in the active Banda OrogenÇ a

reconciliation of the rival hypothesis. Journal of Southeast Asian Earth

Sciencies, v. 6, p. 373-386.

Monteiro, F. da Costa, 2003. Some Late Triassic Rocks in Timor-Leste. Conference

proceeding-International Conference”Oppurtunities & Challenges for Oil and

Gas and Mining Sector in Timor-Leste. Dili

Nataf, J., 2003. The Draft Mining Law of Timor-Leste. Conference proceeding-

International Conference”Oppurtunities & Challenges for Oil and Gas and

Mining Sector in Timor-Leste. Dili

UN ESCAPE-report, 2003. Exploring Timor-Leste: Mineral and Hydrocarbon Potential.

Report prepared by UN ESCAPE consultants for the Government of Timor-Leste.

16